Retirement-401k

Current age______________________________
Expected retirement age____________________
Assumed age at death______________________
Current 401K balance______________________$
Do you expect to contribute until retirement?____	Yes No
If not, for how many years will you contribute?__
Expected annual return after inflation__________
Monthly contribution_______________________$
Employer’s matching percentage_______________



Savings at retirement______________________$
Monthly retirement income__________________$
Annual retirement income ___________________$

401K retirement programs rely on the employee making contribution to their own retirement fund. Employers often match some or all of the employees contribution. The other role that employers play is in determining the investment options available to the employee.

The level of retirement income that you can enjoy from a 401K program depends heavily on when you begin to make contributions. For example, a dollar invested at the age of 25 has 40 years in which to grow if you plan to retire at age 65, while a dollar invested at age 45 has only 20 years in which to grow. Assuming an initial amount of $1,000 and annual return of 5%, that would be the difference between having $7,040 or $2,653 at retirement. That's the power of compounding.